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vestas.com Blowing in the wind: Some answers to effective wind turbine procurement Peter Mills: 22 February 2010

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Page 1: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

vestas.com

Blowing in the wind: Some answers to effective wind turbine procurement

Peter Mills: 22 February 2010

Page 2: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Agenda

Key ContractsKey Contracts

Key risks

Procurement

Key risks

Procurement

Key risks

Service

Key risksService

Page 3: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Page 4: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key contracts: Procurement

EPC

= + ++

Supply

Supply

SupplySupply only

Supply and

Services

+

EPC

= +++

EPC

Supply &

Services

SupplySupplySupply

only

Supply and

Services

EPC

= ++

Supply

Page 5: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key contracts: Service

Page 6: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key contracts: Service

• Regular servicing

• Breakages

• Keeping the turbines available

• Long term

Service

Page 7: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key risks: Procurement

• Wind farms are unique power plants

• location of wind farm sites

• climatic conditions impacting installation

• wind conditions

• grid connection requirements

• regulatory requirements

• Tailored contractual approach required

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Peter Mills | Blowing in the wind

Key risks: Procurement

• Transportation by sea

• In country transport

• Route construction

• Regulatory requirements

Page 9: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Page 10: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key risks: Procurement

• Installation in high wind

• Crane requirements

• Roads, hardstands, foundations

• Requirements for commissioning

Page 11: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key risks: Procurement

• Wind an unpredictable resource

• Collection of site data

• Analysis of site data

• Actual conditions differing from site data

• Force Majeure

Page 12: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key risks: Procurement

• Approvals, permits and consents

• Off-take arrangements

• Connection agreement

• Regulatory requirements

Page 13: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

Peter Mills | Blowing in the wind

Key Risks: Service

• Wind conditions

• Wear, breakages

• Availability and production

Page 14: Blowing in the wind: Some answers to effective wind ... › wp-content › uploads › Peter_Mills_0.pdf · Peter Mills | Blowing in the wind Key risks: Procurement • Wind farms

vestas.com

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